Trade as an Element of National Security

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[The following are excerpts from the speech presented to the California Chamber of Commerce International Trade Breakfast in, San Francisco, California, December 5, 2003.]

My topic today is how trade fits into US national security interests. How growth contributes to our security trade liberalization is a key pillar to self-sustaining growth for our economy, for growth in other industrialized countries, and, in particular, for growth in developing countries, your customers and suppliers not only in the future, but today as well.

Economic growth brought about by free trade, free markets, and investment creates new jobs and raises incomes. The effect of such growth lifts people out of poverty as it spurs economic reform. But trade is not just about economics. Free trade is about freedom and open societies. With all our developing countries partners with whom we are negotiating free trade agreements, in such places as Central America and Southern Africa, we seek to establish the basic building blocks for sustainable development, private property rights, competition, the rule of law, transparency, the free flow of technology, and regional integration. People who trade with each other and invest in each others economies are less likely to wage war against each other. In essence, a strong world economy based on free trade and solid investment regimes advances not only prosperity, but also peace and freedom around the world, thereby enhancing our own national security.

Trade Liberalization Benefits

Both at Home

We have seen a virtuous circle on trade at work in our own economy as total trade as a percentage of overall output has grown from around ten percent three decades ago to nearly thirty percent today. …

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